As if nothing has happened to us since 2015... From the coup attempt to the priest crisis, from the repeated currency crises to the S400s, from the Pandemic to the Russia-Ukraine war, it is an extraordinary historical event that will happen once in a century, but stuck in only 7 years of a generation's life span. We are in the process. Of course, at the end of all this, we witness the depreciation of the Turkish Lira, which the Turkish economy had forgotten for a long time, and the resurrection of the 'Inflation Monster' as a result, and we live this process to our bones.

As someone who loves history and analysis, to explain this a little more with historical figures, about 17.5 years ago, when six zeros were removed from the Old Turkish Lira on December 31, 2004, 1 US Dollar was equal to 1.34 YTL. On August 4, 2008, TL was at one of its most valuable levels, namely $1 = TL1.15. While the economy was going well and everyone was expecting $1 = TL1, the exchange rate continued its horizontal course and on November 4, 2010, it was roughly 6 years ago, ie $1= TL1.39. Just 9 years ago, on August 23, 2013, $1 = TL2.00 was over the psychological (!) limit...

You know the rest of the story. On July 5, 2022, the day I wrote this bulletin, it is hovering around $1 = TL17.

In other words, compared to 9 years ago, the TL in our pocket decreased to 11.76% of its current value. As a result, you can only buy 11.76% of any product or service with a fixed price in Dollars that you could buy 9 years ago with your equal amount of TL. This is sadly called 'poorisation'.If we bring the subject to the Northern Cyprus Real Estate market, I see that the market is divided into two: locals earning TL and foreigners earning foreign currency, just for the reasons I mentioned above. There are also requests that exceed the pre-Pandemic period, especially in the east and west of Kyrenia and in the Iskele region, which are the regions preferred by foreign buyers coming to our country. However, in regions preferred by local buyers, especially in Nicosia, Girne Center and Famagusta, there is a similar contraction in demand.

As a natural result of all these, I see the apartments or villas whose prices increase in places where foreign buyers demand, but cannot be sold due to low demand in places where locals demand and whose prices cannot be increased despite the increase in construction costs.

Of course, it won't be like this forever. Contractors in regions with low sales numbers will quickly move to regions with high sales figures, and the number of finished or near-completed houses for sale in regions with slow sales will decrease. This will eventually push the prices in these regions upwards.

Of course, in such cases, it would be best for the State to step in and support especially young, first-time buyers by resetting the title deed transfer fee, subsidizing credit interest, or even grants, but I have no idea that there will be a step in this direction for Northern Cyprus.

My prediction is as follows: Currently, there is still a finished housing stock, especially in our Nicosia region.However, as the existing stock of finished apartments and finished villas is depleted and the increase in the prices of construction materials begins to be reflected on the sales prices of the houses, it will be inevitable that there will be an increase in house prices in the coming period.

For those who want to keep their money and investment in real estate, which is the 'The Safest Port', I would like to suggest that this month, in addition to my usual observation, Land/Land and Commercial Properties, I would like to suggest especially finished flats and finished villas. Because in a not very long process, it is inevitable that they will experience an increase in value on the basis of foreign currency.

With my love and respect,

Dengiz KÜRŞAT